If someone were to pay around $1000 in commissions to trade the USD/JPY round trip, and all of his money were in that trade, what would be the implied value of their account?
My friend pays $1000 commission per round trip on USD/JPY, what his implied PA
- Thread starter valuetrader007
- Start date
Probably none of your business
All it says is traded 200k contracts of USD/JPY on interactive brokers..
His commission fees are $1000 per round trip per trade, so I was trying to figure out his implied PA.
His commission fees are $1000 per round trip per trade, so I was trying to figure out his implied PA.
impossible to say. we dont know the stop size.
but the notional value of each position is around 20 million usd.
~0.5 pip commission x 10$ per pip, per full lot = 5$ commission, per lot.
1000 / 5 = 200 lots
200 lots x 100,000 = 20 million
assuming risk per trade of 2%, account size can be guessed at
10 pip stop = 200 lots x 10 pips x 10 dollars per pip = 20,000 / 2% = 1 million account value
50 pip stop = 200 lots x 50 pips x 10 dollars per pip = 100,000 / 2% = 5 million account value
probably between 1 and 5 million
but the notional value of each position is around 20 million usd.
~0.5 pip commission x 10$ per pip, per full lot = 5$ commission, per lot.
1000 / 5 = 200 lots
200 lots x 100,000 = 20 million
assuming risk per trade of 2%, account size can be guessed at
10 pip stop = 200 lots x 10 pips x 10 dollars per pip = 20,000 / 2% = 1 million account value
50 pip stop = 200 lots x 50 pips x 10 dollars per pip = 100,000 / 2% = 5 million account value
probably between 1 and 5 million
He is trading USD.JPY with Interactivebrokers, and he is trading 200K, equal to 2 standard lots at a bucket shop. The $1000 commission is his commission priced in Yen, not USD, so he is paying approx. $11 USD in commission.
And if the entire account equity were tied up in that trade, then the account value is less that approx. $5K USD. Initial margin would be $4,999, and he would need at least 5% on top of that to avoid the danger of a force liquidation, so probably a $5250 account, more or less.
